2023 (3) TMI 628 - HC - GST

Fixing FY2017-18 GSTR-1 filing mistakes-wrong GSTIN/invoice details and IGST paid as CGST/SGST-rectification allowed, re-upload ordered.

Rectification of errors in Form GSTR-1 for FY 2017-18 was sought where recipient GSTIN/name, invoice number/date were wrongly stated, certain invoice-wise ... Rectification of details under Section 37(3) of the CGST Act - time bar for rectification under the provisos to Section 37(3) - inadvertent human error / bona fide mistake - absence of enabling mechanism (non notification of GSTR 2 / GSTR 1A) and equitable relief - mandamus to enable portal rectificationRectification of details under Section 37(3) of the CGST Act - time bar for rectification under the provisos to Section 37(3) - inadvertent human error / bona fide mistake - absence of enabling mechanism (non notification of GSTR 2 / GSTR 1A) and equitable relief - Petitioner entitled to have inadvertent and bona fide errors in Form GSTR 1 rectified despite having missed the statutory rectification window, in view of absence of an effective enabling mechanism and non malafide nature of errors. - HELD THAT: - The Court examined Section 37(3) of the CGST Act and its provisos which prescribe a time frame for rectification of details. Admittedly the statutory window (including the extended period under the second proviso) had elapsed. However, the factual position - inadvertent clerical errors committed during early implementation, tax liability having been discharged, and absence of notification of complementary forms (GSTR 2 / GSTR 1A) which would have enabled earlier detection - led the Court to apply equitable considerations. The Court relied on its earlier decisions where similar bonafide mistakes were allowed to be corrected because the statutory, enabling procedure for detection and amendment was not in place and the assessees were not shown to have acted with malafide intent. In these circumstances the petitioner would be prejudiced if denied correction of records necessary for reconciliation and for downstream claims of recipients; accordingly the petitioner was permitted relief notwithstanding the expired time limit. [Paras 9, 10, 11]Petitioner permitted to rectify inadvertent errors in GSTR 1 despite the lapse of the statutory rectification period, on account of non malafide conduct and absence of an effective statutory/portal mechanism.Mandamus to enable portal rectification - equitable relief due to absence of statutory mechanism - Relief in the form of a mandamus directing respondents to enable uploading of rectified GSTR 1 details and to accept the corrected annexures within a specified time. - HELD THAT: - Having concluded that equitable relief was warranted, the Court directed respondents to take necessary steps to permit the petitioner to upload corrected details of Form GSTR 1 and to accept the same on the GST portal so as to enable proper reconciliation and auto population for recipients. The order fixed a timeline for completion of the exercise to give finality and to ensure administrative implementation of the remedy granted. [Paras 14, 15]Mandamus issued to respondents to enable uploading and acceptance of rectified GSTR 1 details; exercise to be completed within six weeks.Final Conclusion: Writ petition allowed: petitioner permitted to rectify inadvertent GSTR 1 errors notwithstanding expiry of the statutory rectification period; respondents directed by mandamus to enable uploading and acceptance of the corrected GSTR 1 annexures within six weeks; no costs. Issues involved:The judgment involves the issue of rectifying clerical errors in Form GSTR-1 for the period 2017-18 under the Central Goods and Services Tax Act, 2017.Details of the Judgment:Issue 1: Errors in Form GSTR-1The petitioner, a dealer in metal and steel scrap, sought a mandamus to rectify errors in Form GSTR-1 for the period 2017-18. The errors included wrongly mentioned recipient's GSTIN/name, invoice number/date, omitted invoice details in GSTR 1, and inadvertent remittance of IGST under SGST and CGST. The errors were attributed to inadvertent carelessness due to unfamiliarity with the new Goods and Services Tax system.Issue 2: Lack of Mechanism for RectificationThe petitioner discovered the errors in December 2019 when customers brought them to attention. Attempts to rectify the returns were futile due to the absence of a mechanism under the Act or the portal. The tax liability was met based on reported turnover, and the correction was sought for proper reconciliation with third parties.Issue 3: Provisions of Section 37 of the ActThe respondents argued that there was no mechanism available for the mandamus sought. They referred to Section 37(3) of the Act, which sets a time frame for rectification of errors in details furnished for any tax period. The petitioner missed the deadline for rectification as per the provisions.Judicial Precedents and DecisionThe Court noted previous decisions allowing rectification of errors in similar circumstances where no malafides were attributed to the assessee. The errors were deemed inadvertent, and rectification would enable proper reporting for turnover and input tax credit. The Court accepted the petitioner's prayer and issued a mandamus to the respondents to enable uploading of the rectified GSTR 1 within six weeks.